Kingsbridge seizes Fleet office opportunity

Lambert Smith Hampton has acquired Linea House, Ancells Business Park, for Sussex based property company, Kingsbridge Estates. At a value of £3,725,000, this reflects a net initial yield of 7.62%.

The 22,062 sq ft building, sold by Craigard Investments, is located on an established business park and let to four tenants - Verisk Analytics Limited, Anite Telecoms Limited, Grass Roots Meetings & Events Limited and PRMA Consulting Limited.

Driven by a forecast increase in demand and rental growth due to the amount of supply that has left the Fleet market for permitted development, the acquisition of Linea House is a comfortable fit for the Kingsbridge Estates portfolio, which includes properties located in Slough, Bracknell, Southampton and Chichester.

Jerry Vigus, director of capital markets at Lambert Smith Hampton, explains: "Linea House is effectively let below passing rent, averaging £14.05 per sq ft compared with similar buildings on Ancells Business Park, which are let at £18.00 per sq ft. This offers Kingsbridge Estates significant potential rental growth, being purchased with a low capital value of circa £170.00 per sq ft. A number of buildings on Ancells Business Park have been sold for permitted development and this offers an alternative use for Kingsbridge Estates in the future."

Kingsbridge Estates adds: "Fleet is an attractive business location for us to invest in because of its position on the M3 and its rail access to London. The area has high quality business space, good housing stock and a diverse economy. We are always looking for such quality assets in the South East."

Craigard Investments Limited acquired the property 15 months ago and carried out successful letting to tenants who are committed to the building and the location.

For further information relating to this news article contact Jerry Vigus